Steel Markets
Single-Family Housing Starts Improve in July
Written by Sandy Williams
August 16, 2019
Housing starts in July dipped 4.0 percent from June to a seasonally adjusted annual rate of 1,184,000, but were 0.6 percent higher than a year ago, reports the U.S. Department of Commerce. Single-family housing starts gained 1.3 percent from the previous month, while starts for buildings with five units or more fell 17.2 percent.
“Despite housing affordability headwinds, builders remain confident about the market and this is reflected in recent modest gains in single-family starts,” said National Association of Homebuilders Chairman Greg Ugalde.
Building permits rose 8.4 percent from June to July to a SAAR of 1,232,000 and were 1.5 percent higher than a year ago. Single-family permits gained 1.8 percent while multi-family housing permits of five units or more jumped 24.8 percent.
“Permits bottomed out in April and single-family starts hit their low point in May, and now we are starting to see the gradual improvement in the market that we’ve been forecasting,” said NAHB Chief Economist Robert Dietz.
“Given reduced mortgage interest rates and improved inventory levels, we expect continued modest gains for single-family construction bringing 2019 totals to relatively flat conditions,” said Dietz. “This matches the signal provided by the NAHB/Wells Fargo HMI, which improved to a positive level of 66 in August. Indeed, single-family permits, a leading indicator, also improved in July, expanding by 1.8 percent, although remaining lower on a year-to-date basis by 4.7 percent.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Markets
Steel market participants mull the impact of US/Mexico S232 negotiations
Steel market participants learned that negotiations between the US and Mexico include discussions about Section 232 tariffs on steel and aluminum despite President Trump’s June 3 proclamation increasing the tariffs from 25% to 50% for all steel and aluminum imports—except for those from the UK.
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
CRU Insight: A 50% S232 tariff will raise US steel prices and shift trade flows
This CRU Insight examines how the increase in Section 232 tariffs on steel to challenging levels will lead to significatively higher prices for end consumers in the US market.
Steel market shakes tariffs off amid weak demand
Service centers and distributors contend that weak demand is to blame for the flattening of domestic steel spot prices, as reflected in Nucor Steel’s weekly Consumer Spot Price (CSP) notice. On Monday, the Charlotte, North Carolina-headquartered steel producer left prices unchanged from the previous week. Nucor has maintained prices of plate produced in Brandenburg since March 28.